KT, SingPost to team up for AI-based digital logistics

South Korea's KT Corp. announced on Monday that it has signed a memorandum of understanding (MOU) with Singapore Post (SingPost), a state-run postal and logistics service in Singapore, with the aim of enhancing logistics efficiency using artificial intelligence (AI).

The partnership will initially focus on a pilot program designed to optimize digital logistics across seven specific regions in Singapore.

Both companies will utilize KT's proprietary AI transportation platform, the Logistics Intelligence Suite for Freight Optimization (LIS'FO), to streamline transportation routes and logistics operations.

KT's LIS'FO uses AI-driven algorithms to predict and calculate the most efficient transportation routes and loading configurations. Preliminary data analysis from SingPost's transportation metrics indicates that implementing LIS'FO could reduce the operational driving distance by 27% and the number of required operating vehicles by 15%.

"SingPost manages a vast scope of logistics big data annually. Based on this, we foresee unlimited opportunities for a successful, collaborative paradigm with KT in Singapore," Vice President of SingPost Eric Yeo said. 

Write to Ji-Eun Jeong at jeong@hankyung.com